Education
About Us
Working with TipRanks
Follow Us
ChampionX Corporation (CHX)
:CHX
Top Page
ChampionX
(NASDAQ:CHX)
Rating:66Neutral
Price Target:
$28.00
â–²(7.36%Upside)
ChampionX (CHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.99B
Dividend Yield1.51%
Average Volume (3M)3.28M
Price to Earnings (P/E)17.2
Beta (1Y)0.99
Revenue Growth-4.17%
EPS Growth-17.99%
CountryUS
Employees7,100
SectorEnergy
Sector Strength42
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.50
Shares Outstanding191,436,550
10 Day Avg. Volume3,052,969
30 Day Avg. Volume3,279,889
Financial Highlights & Ratios
PEG Ratio3.24
Price to Book (P/B)2.81
Price to Sales (P/S)0.00
P/FCF Ratio11.56
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit4.53
Enterprise Value/Ebitda1.85
Forecast
1Y Price Target
$40.00Price Target Upside53.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ChampionX Business Overview & Revenue Model
Company DescriptionChampionX Corporation provides chemistry solutions, and engineered equipment and technologies to oil and gas companies worldwide. The company's Production Chemical Technologies segment offers onshore and offshore chemical solutions, such as corrosion inhibitors, scale inhibitors, emulsion breakers, and biocides to oil and natural gas production and midstream markets to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment, and water-related issues. The company's Production & Automation Technologies segment provides artificial lift equipment, end-to-end automation and digital solutions, and other production equipment, including electrical submersible pumping systems, gas lift systems, jet pumps, multiplex surface pumps, plunger lift equipment, progressive cavity pumping systems, downhole rod lift systems, emissions monitoring solutions, chemical injection systems, flow control valves, and gauges under the Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, and Windrock brands. The company's Drilling Technologies segment offers polycrystalline diamond cutter inserts, bearings, valves, and mining tools under the US Synthetic brand for use in oil and gas drill bits, renewable energy applications, mixers, and agitators; and high-density ceramic roof bolt mining tools for underground mining operations. The company's Reservoir Chemical Technologies segment provides chemistry-oriented solutions and technologies for well drilling, cementing, fracturing, acidizing, and other well interventions, as well as fracturing fluid packages, drilling and cement additives, and products for acidizing activities. ChampionX Corporation is headquartered in The Woodlands, Texas.
How the Company Makes MoneyChampionX makes money primarily through the sale of its chemical solutions, artificial lift equipment, and digital technologies to oil and gas companies around the world. Its revenue streams are generated from long-term service contracts, product sales, and recurring service agreements. The company's key revenue sources include the production and sale of specialty chemicals used in oil extraction and processing, as well as the provision of equipment and support services for artificial lift systems, which help in the extraction of oil from wells. Significant partnerships with major oil and gas producers and ongoing investments in research and development to improve product offerings further contribute to its earnings.
ChampionX Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q4-2023)
| % Change Since: 5.72%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The call presented a strong financial performance for ChampionX with significant growth in adjusted EBITDA, excellent free cash flow generation, and robust shareholder returns. However, the company faced challenges with flat revenue growth, declines in specific segments, and market uncertainties in North America. Despite these obstacles, the company remains optimistic about 2024, driven by international growth and opportunities in emissions technology.Q4-2023 Updates
Positive Updates
Strong Adjusted EBITDA Growth
ChampionX delivered a 25% year-over-year growth in adjusted EBITDA, reaching over 20% margin, which expanded by 430 basis points. This was driven by higher volumes, productivity, cost management, and higher selling prices.
Record Cash Flow and Shareholder Returns
Generated over $400 million of free cash flow and returned $343 million to shareholders, up 52% from 2022. The company increased its share repurchase program to $1.5 billion and raised the regular cash dividend by 12%.
International Growth and Diversification
International growth was strong in the fourth quarter at 6% sequentially, led by 15% growth in Middle East and Africa region. Production Chemical Technologies business grew 16% in 2023 in the U.S., and Production & Automation Technologies grew 16% internationally.
Positive Outlook for 2024
Expecting a growth year for ChampionX in 2024, both internationally and in North America, driven by production-oriented businesses. The EPA's methane standards are expected to drive accelerated growth in emissions business.
Negative Updates
Flat Revenue and Decline in Certain Segments
Fourth quarter revenue was flat sequentially and down 4% year-over-year. Production Automation Technologies revenue decreased by 6% sequentially, and Drilling Technologies revenue fell by 15% sequentially.
Challenges in North American Short-Cycle Business
Short-cycle North American business, particularly Drilling Technologies, faced challenges with a sequential revenue decline of more than expected due to U.S. land activity slowdown and customer destocking.
Seasonal and Market Uncertainties
Facing near-term market uncertainty with respect to the timing and trajectory of U.S. land drilling and completions activity, impacting the first quarter outlook with expected lower international revenue due to seasonality.
Company Guidance
In the fourth quarter of 2023, ChampionX Corporation reported a strong financial performance with an adjusted EBITDA margin of 21%, flat sequentially, and a 25% year-over-year growth in adjusted EBITDA. The company achieved a 430 basis point expansion in adjusted EBITDA margin and generated over $400 million in free cash flow, with a return on invested capital reaching 18%, up 400 basis points from the prior year. Revenue was reported at $944 million, showing a 6% increase internationally, led by 15% growth in the Middle East and Africa and 7% in Latin America. North American revenue remained flat, with Production Chemical Technologies growing 16% in the U.S. for the full year. ChampionX returned 83% of free cash flow to shareholders, amounting to $343 million, and announced an increase in its share repurchase program to $1.5 billion. For 2024, the company expects continued revenue and earnings growth, with an emphasis on productivity projects and capital returns to shareholders.ChampionX Financial Statement Overview
Summary
ChampionX demonstrates strong profitability with good operational efficiency, as reflected in its income statement and balance sheet. While the company maintains healthy leverage and returns on equity, the decline in revenue growth and free cash flow may require attention.Income Statement
ChampionX shows strong profitability with a gross profit margin of 33.15% and a net profit margin of 8.20% for the TTM period. However, revenue has slightly decreased by 1.59% from the previous year, indicating some pressure on top-line growth. The company has maintained a robust EBIT margin of 12.94% and an EBITDA margin of 18.25%, reflecting good operational efficiency.75
Positive
Balance Sheet
The balance sheet displays a solid debt-to-equity ratio of 0.28, indicating prudent leverage management. Return on equity stands at 13.80%, showcasing effective use of shareholder capital. However, the equity ratio of 60.70% suggests a strong reliance on equity financing, which is generally a positive indicator of financial stability.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow by 23.62%, which may raise concerns about cash generation capabilities. The operating cash flow to net income ratio of 1.65 suggests healthy cash earnings, while the free cash flow to net income ratio of 1.17 indicates adequate conversion of earnings into free cash.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.58B | 3.63B | 3.76B | 3.81B | 3.07B | 1.90B | Gross Profit |
| 1.19B | 1.19B | 1.14B | 898.66M | 743.27M | 409.17M | EBIT |
| 462.82M | 468.07M | 506.61M | 300.12M | 204.61M | -53.77M | EBITDA |
| 715.94M | 750.97M | 719.36M | 616.36M | 441.89M | -496.66M | Net Income Common Stockholders |
| 293.14M | 320.27M | 314.24M | 154.97M | 113.30M | -742.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 53.64M | 507.68M | 288.56M | 250.19M | 251.68M | 201.42M | Total Assets |
| 1.21B | 3.47B | 3.24B | 3.39B | 3.53B | 3.48B | Total Debt |
| 559.53M | 695.79M | 665.75M | 627.95M | 724.51M | 932.61M | Net Debt |
| 505.90M | 188.11M | 377.20M | 377.76M | 472.83M | 731.19M | Total Liabilities |
| 842.53M | 1.64B | 1.58B | 1.71B | 1.78B | 1.86B | Stockholders Equity |
| 363.00M | 1.85B | 1.68B | 1.69B | 1.77B | 1.63B |
| Cash Flow | Free Cash Flow | ||||
| 342.33M | 448.37M | 397.95M | 310.55M | 243.75M | 264.88M | Operating Cash Flow |
| 482.98M | 589.68M | 540.27M | 413.36M | 328.22M | 310.04M | Investing Cash Flow |
| -232.79M | -215.34M | -127.78M | -87.99M | -37.41M | 22.13M | Financing Cash Flow |
| -106.51M | -150.46M | -373.17M | -324.81M | -234.35M | -175.37M |
ChampionX Technical Analysis
Positive
26.08
Price Trends
25.15
Positive
27.24
Negative
28.34
Negative
Market Momentum
-0.09
Negative
60.02
Neutral
85.25
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHX, the sentiment is Positive. The current price of 26.08 is above the 20-day moving average (MA) of 25.02, above the 50-day MA of 25.15, and below the 200-day MA of 28.34, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 85.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHX.
ChampionX Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $13.82B | 17.40 | 27.24% | 0.62% | 14.26% | 294.37% | |
77 Outperform | $17.64B | 8.60 | 20.99% | 3.24% | -2.54% | -17.53% | |
76 Outperform | $48.31B | 12.05 | 20.82% | 3.25% | 5.83% | -2.03% | |
74 Outperform | $3.51B | 7.69 | 38.48% | 2.03% | 0.77% | 1.69% | |
73 Outperform | $5.00B | 8.88 | 9.29% | 2.33% | 0.54% | -39.88% | |
66 Neutral | $4.99B | 17.21 | 16.16% | 1.51% | -4.17% | -17.99% | |
58 Neutral | $7.35B | 3.36 | -4.49% | 5.60% | 0.82% | -49.15% |
* Energy Sector Average
Performance Comparison
CHX
ChampionX
26.08
-5.25
-16.76%
FTI
TechnipFMC
32.96
8.48
34.64%
HAL
Halliburton
21.75
-11.83
-35.23%
NOV
NOV
13.31
-3.88
-22.57%
SLB
Schlumberger
35.52
-8.19
-18.74%
WFRD
Weatherford International
51.40
-61.22
-54.36%
ChampionX Corporate Events
Executive/Board ChangesShareholder Meetings
ChampionX Holds Annual Meeting with Key Approvals
Neutral
Jun 10, 2025
On June 10, 2025, ChampionX held its Annual Meeting where 89.8% of eligible voting shares were represented. During the meeting, eight directors were elected to serve until the 2026 annual meeting, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm, and the compensation of the company’s named executive officers for 2024 was approved on an advisory basis.
The most recent analyst rating on (CHX) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on ChampionX stock, see the CHX Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.